Enpro Investor Presentation November 2023
Consolidated Adjusted EBITDA (1/2)
For the Year Ended December 31, 2022
(In Millions)
Income from continuing operations attributable to EnPro Industries, Inc., net
of tax
Net income attributable to redeemable non-controlling interests
Income from continuing operations
2022
$
6.7
(2.8)
3.9
Adjustments to arrive at earnings before interest, income taxes,
depreciation, amortization, and other selected items ("Adjusted EBITDA"):
Interest expense, net
Income tax expense
Depreciation and amortization expense
Restructuring and impairment expense
33.9
24.4
103.1
2.9
Environmental reserve adjustments
5.1
Costs associated with previously disposed businesses
0.3
Net loss on sale of business
0.6
Acquisition and divestiture expenses
1.2
Pension income (non-service cost)
(3.6)
Non-controlling interest compensation allocation¹
(0.6)
Asbestos receivable adjustment
2.8
Amortization of the fair value adjustment to acquisition date inventory
13.3
Tax indemnification asset 2
Goodwill impairment
0.9
65.2
Foreign exchange losses related to divestiture of GGB 3
3.8
Other
Adjusted EBITDA
$
0.2
257.4
Enpro Investor Presentation November 2023
15
INon-controlling interest compensation allocation
represents compensation expense associated with a
portion of the rollover equity from the acquisitions of
LeanTeq and Alluxa that was and is subject to reduction
for certain types of employment terminations of the
LeanTeq and Alluxa sellers and is directly related to the
terms of the respective acquisitions. This expense will
continue to be recognized as compensation expense over
the term of the put and call options associated with the
acquisitions unless certain employment terminations have
occurred. The LeanTeq non-controlling interests were
acquired by EnPro in December 2022.
2 In connection with the acquisition of Aseptic in 2019, we
recognized a liability for uncertain tax positions and a
related indemnification asset for the portion of that liability
recoverable from the seller. We determined the statute of
limitations expired on some of the uncertain tax positions in
2022 and 2021 and, accordingly, removed a portion of the
liability and receivable. The release of the related liability
was recorded as part of our tax expense for the year
ended December 31, 2022 and 2021 and the reversal of
the related receivable was recorded as an expense in
other non-operating income (expense) on our
consolidated statement of operations.
3 In connection with the sale of GGB, accounted for as a
discontinued operation, in the fourth quarter of 2022, we
issued an intercompany note between a domestic and
foreign entity that was denominated in a foreign currency.
As a result of this note, we recorded a loss due to the
change in exchange rate during December 2022. In
January 2023, we hedged the outstanding notes and
expect future gains or losses to be minimal.
ENPRO
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